Talk Money To Me: Take a paid internship and learn how to manage money

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Talk Money To Me: Take a paid internship and learn how to manage money
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If you’re searching for an internship this summer, prioritize applications for paid internships over the unpaid ones.

If you take a paid internship, you will have the valuable opportunity to learn how to manage money. According to a December 2016 National Financial Educators Council report, 57 percent of college graduates plan to move back in with their parents, 56 percent of American adults do not have a budget, 39 percent of American adults have no retirement savings, and 76 percent of college students polled “wish they had more help to prepare for their financial futures.”

Don’t be one of those college students who has no clue how to manage debt payments and bills when he graduates. Don’t be one of those new employees who doesn’t understand how to start saving for retirement and match a 401(k). Don’t be one of the 57 percent who moves back in with his parents.

Getting a paid internship could be your key to learning how to budget and taking your financial future into your own hands. If you receive a paycheck from your summer employer, you can get a head start on learning how to live like an adult before you graduate.

The good news is that paid internships aren’t difficult to find. If you’re unsure of where to look, start by asking Career Services or your adviser. During my paid internship in Rockford, Illinois last summer, I started my first budget and learned how to plan bill payments around my grocery runs and fill-ups at the gas station. If I hadn’t been paid, not only would I not have been able to take the internship, but I also wouldn’t have gotten the opportunity to learn how to live like an independent adult.

Treat an internship like your “adulting” test run: you’re employed and paid, you’re living on your own, you have to buy yourself food and pay for transportation. You may not be completely independent yet (odds are mom and dad still pay your health insurance), but taking a paid internship is a great opportunity for you get a feel for what life will be like after college.

If your parents typically give you money to help pay for school, ask them to withhold their charitable gifts for a summer, and see how you do on your own. Try problem-solving by yourself when you experience a shortage of funds: instead of running to mom and dad for money so you can go out Friday night, opt for a night in and budget your money more carefully for the next week. Instead of squandering cash on bars on the weekends, check out the city sights with fellow interns: hit up public parks and museums, attend free events with free food and free alcohol (yes, they do exist).

Taking a paid internship and receiving a paycheck is one of the best ways to build good financial habits. Educate yourself. Don’t be financially illiterate. Pursue a paid internship, and you’ll be better prepared for life after graduation.